Some USD flows hitting the market
The US dollar is near the best levels of the day on most fronts as June winds down. There has been a persistent dollar bid this week that doesn’t line up with other markets — stocks and bonds have been bid.
I suspect that will unwind at the tail end of the week but only if the non-farm payrolls report allows it.
For now, we’ll just have to roll with the flows. Pending home sales are coming up at 10 am ET but the main event is probably the 11 am ET London fix. If fireworks are coming, that will be the time. If we get a further USD pop — particularly against the commodity currencies — I think it will be the right time to fade it.